Smaller businesses don’t believe that Making Tax Digital (MTD) applies to them, according to a study carried out by Yonder Consulting for HMRC. While businesses indicated they were aware of MTD for VAT, many still do not understand the process of the scheme and whether their business needs to comply with the rules. In a … Continued
Lack of awareness of tax liability among crypto investors
More than half of cryptocurrency investors have limited or no understanding of capital gains tax (CGT) and the associated tax liability on crypto transactions. Understanding of CGT was mixed, with 34% of owners stating they had a good understanding, compared to 37% who knew little or nothing and 22% who were not familiar with it … Continued
Government overhauls audit regime
The Government has published a response to its consultation on strengthening audits, corporate reporting and corporate governance systems. The long-awaited response outlines the Government’s plans to tackle dominance of large auditors, ban failing ones and bring unlisted companies under the scope of the regulator. The current Financial Reporting Council will also be replaced by a … Continued
National Insurance threshold increases
The Government is increasing the threshold at which workers start to pay National Insurance contributions (NICs) by £12,570 this month – the largest increase in a basic rate threshold. The increase in the threshold means workers can earn an extra £2,690 before having to pay NICs. The change also brings the NIC and income tax … Continued
Taxpayers not ready for Making Tax Digital
People are unprepared and unenthusiastic for Making Tax Digital (MTD), according to a survey commissioned by HMRC. Global market research group Ipsos recently released data suggesting “awareness of MTD in general, and MTD for income tax self-assessment (ITSA) specifically was low”. MTD ITSA will require people with annual business or property income above £10,000 to … Continued
Recovery loan scheme comes to an end
The Government’s flagship Covid business recovery scheme officially came to an end late last month (30 June). The recovery loan scheme opened to applications on 6 April 2021 to help businesses cope with trade lost to the Covid pandemic. The scheme offered £1.06 billion to small businesses through almost 6,200 facilities, with the latest figures … Continued
The Charity Commission
The Charity Commission has launched a consultation on its approach to and new proposed questions for the Annual Return for financial years starting on or after 1 January 2023. They want to obtain data to allow them to regulate charities more effectively and allow flexibility to include or omit questions in the Return each year. … Continued
SMEs unprepared for MTD rollout
Small and medium-sized businesses are underprepared for Making Tax Digital (MTD), according to new research by the Association of Chartered Certified Accountants (ACCA). Working with the Corporate Finance Network (CFN), the ACCA’s SME tracker showed that 14% of accountants in the UK say their SME clients are “unprepared and will not be ready” for future … Continued
Bank of England raises interest rate to 1%
The Bank of England (BoE) has raised its base interest rate to 1%, marking the fourth rise in a row and the highest base rate in 13 years. The Bank’s monetary policy committee (MPC) voted 6-3 to increase the base rate of interest by 0.25% percentage points from 0.75% on 5 May 2022. The current … Continued
Work from home tax relief may not be available in 2022/23
Employees who claimed tax relief for working from home during the pandemic may no longer qualify in the 2022/23 tax year as HMRC changes its guidance for the scheme. During the COVID-19 pandemic, people who could do their normal job at home were required to do so at various times and were allowed to apply … Continued